The rate for a 30-year fixed-rate mortgage exceeded 4 percent for the first time since October 2011 during the week ending March 22, Freddie Mac reports.
According to the mortgage giant's Primary Mortgage Market Survey, the rate for a 30-year FRM increased to an average of 4.09 percent from 3.92 percent a week earlier. Despite the increase, the rate is still well below the average a year ago when it hovered at 4.81 percent. In addition, the rate for a 15-year FRM also rose, climbing to 3.3 percent, from 3.16 percent the previous week.
"Mortgage rates are catching up with increases in U.S. Treasury bond yields placing the average 30-year fixed mortgage rate above 4 percent for the first time since the end of October 2011," said Freddie Mac vice president and chief economist Frank Nothaft.
Meanwhile, mortgage records show that the rate for 5- and 1- year Treasury-indexed hybrid adjustable-rate mortgages rose to an average of 2.96 and 2.84 percent, respectively.
Despite the increase, the current relationship between mortgage rates, home prices and median household income is still maintaining housing affordability at an all-time high.